Africa Oil Week 2025: Unlocking Africa’s Energy Future

1. Major investors reaffirm commitment to African frontiers

The energy transition is shifting investment in the oil and gas industry toward low-carbon technologies such as renewables, carbon capture, and hydrogen, while reducing long-term capital allocation for traditional fossil fuel projects due to declining demand projections and climate policy pressures.

Despite global pressures, leading International Oil Companies (IOCs) expressed strong long-term confidence in African exploration. Significant discoveries, particularly in the Orange Basin, are attracting substantial capital investment. Other key activities further underscore this commitment:

• Shell is appraising its multi-well Graff find.
• TotalEnergies is advancing its giant Venus discovery and Jonker find.
• Galp is evaluating the significant Mopane complex.
• NAMCOR (Namibia’s NOC2) has established four joint ventures to accelerate exploration.

Similarly, other regions on the east coast ( Mozambique’s Rovuma basin, Madagascar’s Morondava Basin and Tanzania’s Mafia Deep Basin) are attracting investment from IOCs such as ExxonMobil, Shell, BP and others.

These activities position the region as a key frontier for replacing and growing global supply. For Africa, this brings vital foreign direct investment (FDI), technology transfer, and expertise. It strengthens the bargaining power of African nations and NOCs as competition for prime assets increases. For the industry, Africa remains a key battleground for exploration success and growth, requiring adaptation of investment models to smaller, more efficient exploration packages and preparation for a more competitive landscape with both Majors and agile independents.

2. Governments are pivotal in creating an investor friendly climate

Unlocking finance and investment is key to Africa’s development, and governments are key determinants of this.

To achieve these goals, governments need to ensure 4 elements are in place:

• Policy stability and certainty 
• Transparent contracting and security of tenure
• Fair distribution of revenues
• A low cost of doing business

Several countries have progressed along these lines. Senegal (through its successful partnership with BP), Angola (Chevron, AZULE and BP partnerships), and Mozambique (ExxonMobil, TotalEnergies and ENI investments) were cited as prime examples where improved fiscal terms and regulatory clarity have borne fruit in the form of increased investment. And, recently the CEOs of BP, ENI and Sintana, attended the Angola Oil & Gas Conference in September 2025 demonstrating their commitment to Angola as an attractive investment destination.

The implication is clear: nations that successfully implement these reforms will win a disproportionate share of finite global capital, creating a positive feedback loop of investment begetting more investment. For the industry, reduced political risk lowers the cost of capital for projects, reducing the time from discovery to final investment decision.

3. Regional cooperation is nonnegotiable for value creation

Individual African nations often lack the capital or market size to build infrastructure alone. Key strategies identified included harmonising legislation across jurisdictions, reducing visa  restrictions to ease the movement of businesspeople, and developing shared infrastructure to reduce costs and avoid duplication, ultimately unlocking resources in landlocked countries.

This shift from nationalism to regionalism could lead to unprecedented economic integration, stability, and energy security within blocs like SADC or ECOWAS. For the industry, a regional approach makes large-scale, capital-intensive midstream projects more economically viable, simplifies the regulatory landscape for cross-border operations, and creates more stable demand outlooks.

Successful examples of cross border integration are the West African Gas Pipeline, Mozambique – South Africa gas pipeline and the proposed Angola-Zambia pipeline are blue prints for future regional cooperation and value creation.

4. Monetising resources is the pivotal catalyst for development

Africa faces a stark energy paradox: it is resource rich yet has the world’s lowest energy access rates. With over 640 million people without electricity and nearly a billion relying on traditional biomass for cooking, the urgency for development is acute. Per capita energy consumption in sub-Saharan Africa (excluding South Africa) is a mere 180 kWh7, compared to 13,000 kWh in the United States, highlighting the vast unmet demand and opportunity. This prioritisation of near-term economic survival over long-term global climate goals means African governments will likely continue to favour and fast-track oil and gas projects.

Revenue from oil and gas projects remains the most viable catalyst to fund essential infrastructure, create jobs, and improve access to healthcare and education, thereby breaking the cycle of poverty. However, this approach carries the risk of perpetuating a “resource curse” if robust governance and revenue management systems are not implemented concurrently.

"With over 640 million people without electricity and nearly a billion relying on traditional biomass for cooking, the urgency for development is acute.”

5. Technology is accelerating development and de-risking exploration

The adoption of advanced technology is compressing project timelines and improving success rates. The use of 3D/4D seismic imaging, data analytics, and digital twinning is revolutionising exploration and production processes, making investments more efficient and attractive. TotalEnergies cited its use of AI and highspeed computing to analyse massive geological datasets, which was instrumental in de-risking the drilling decision that led to the Venus discovery.

The use of technology benefits everyone. For Africa, faster discoveryto-production timelines mean governments can see revenue sooner, but it also requires a skilled local workforce, pressuring governments and companies to invest significantly in education and STEM8 training. For the industry, leveraging these technologies reduces risk and cost, improving returns on investment and creating a competitive advantage for companies with strong technical capabilities.

6. IOC divestment creates opportunities for local capacity building

The strategic exit of IOCs from onshore and shallow-water assets to offshore and deep water assets is creating a new class of African energy companies. Firms like SEPLAT (dual-listed on the LSE and NSE) and Oando from Nigeria were highlighted as blueprints for localising production, building domestic capacity, and attracting capital. This transition demonstrates how value can be retained within the continent, creating a virtuous cycle of investment and development. 

For Africa, this is a crucial test for economic emancipation, though it carries the risk that if indigenous companies lack capital or technical capability, it could lead to operational underperformance. For the industry, this evolution creates a new ecosystem where Majors can monetise non-core assets while focusing on largescale offshore projects, requiring service companies to adapt to serve the different needs of growing indigenous operators.

"The use of 3D/4D seismic imaging, data analytics, and digital twinning is revolutionising exploration and production processes, making investments more efficient and attractive.”

7. A pragmatic African view defines the energy transition dialogue

The conference firmly acknowledged the global energy transition but framed it through a lens of African pragmatism. The consensus view was that socio-economic challenges currently take precedence. As one speaker noted, “Those who do not have energy can think of energy transition.” The central question remains: who will fund Africa’s transition? 

Africa’s resources must not be stranded and the continent cannot be left behind. There is therefore a critical need to to mobilise finance and expertise to unlock its resource endowment. This assertive stance means Africa is charting a new model for resource-rich developing nations, potentially unlocking “green” development funding tied to gas-based transition plans. For the industry, this will create growing demand for projects that integrate gas development with carbon management solutions (CCUS) and future-proof infrastructure for green hydrogen or ammonia.

Conclusion

Africa Oil Week highlighted the challenge Africa faces: the immediate need to use oil and gas for development against the backdrop of a global energy transition. 

The way forward requires a practical approach. Africa must monetise its resources to create jobs and fund development. This must be done through regional cooperation and stable policies to attract investment. The future will favour projects that demonstrate not only financial returns but also operational safety, local content development and sustainability.

It is in this context that operational expertise is critical to unlock Africa’s resource potential while protecting its people and environment.

How dss⁺ supports

dss⁺ is the operational transformation partner for complex and high-hazard industries, embedding real-world expertise and proven methodologies to shift mindsets, shape cultures, and build critical capabilities at every level. Through this approach, we help organisations achieve breakthroughs in safety, performance, and sustainability – while ensuring long-term business endurance. 

We operate across the business lifecycle:

In the oil & gas sector, where operational risks are high, we employ a risk-based approach to safeguard people, assets, and the environment. By integrating advanced risk management frameworks, we enhance compliance, mitigate hazards, and foster a culture of safety across the entire oil value chain.

True transformation goes beyond protection. At dss⁺, we unlock long-term value by optimising processes, leveraging digital tools, and driving innovation—leading to increased efficiency, productivity, and profitability. Our data-driven insights enhance resource exploration and streamline project execution, ensuring oil companies meet delivery targets while staying within budget.

At dss⁺, we integrate sustainable practices into operational transformation by focusing on decarbonisation, circular economy principles, and business endurance. We assist Energy companies in transitioning from traditional linear models to circular ones, reducing waste, optimising resources, and fostering long-term sustainability.

At dss⁺, we don’t just consult – we embed change, helping oil and gas companies protect what matters most, transform operations, and sustain success for generations to come.